Reliance eyes cross-border acquisition

The Reliance group is eyeing the acquisition of plastics business of a well-known company in Pakistan for about $300 million, industry sources said today.

Market leader in the polyster business in India, Reliance is said to be keen on acquiring the plastics business of ICI Pakistan Ltd which also manufactures soda ash, paints, chemicals and life science products

When contacted, Reliance officials in Mumbai declined to comment on the issue.

According to available information the Pakistan arm of ici is a profit making entity having netted $47.8 million during 2004.

Reliance had acquired ici polyster fibre business in the early 1990s, sources said. The uk based multinational was instrumental in producing polyster fibre for the first time in India by setting up a plant at Thane in Maharashtra.

In Pakistan, ici is among the largest quoted company at Karachi, Lahore and Islamabad stock exchanges with a paid up share capital of $23.38 million.

With a turnover of over $357 million, the company had reported capital reserves of $7.83 million during 2004, according to company's annual report.

In 1995, ICI Pakistan Ltd started a $490 million pta manufacturing facility at Port Qasim and the project was commissioned in 1998, the company's website said. The business was demerged in 2001 to form Pakistan PTA Ltd.